Status message

Auditing New Revenue Rule: “Like a First-Year Audit"

Just as companies are starting to determine how to account for revenue under a new accounting standard, auditors are starting to consider new audit techniques that will be required.

The Public Company Accounting Oversight Board assembled its Standing Advisory Group recently to begin thinking through how the audit of revenue recognition will need to change based on the new accounting requirements. The Financial Accounting Standards Board and the International Accounting Standards Board adopted a brand new standard that will overhaul the recognition of revenue for all companies, taking effect in 2017. The PCAOB says it is considering whether to develop guidance, amend its existing standards, or issue a new standard on auditing revenue.